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Politics : Stockman Scott's Political Debate Porch

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To: yard_man who wrote (10733)12/22/2002 10:55:30 AM
From: stockman_scott  Read Replies (2) of 89467
 
'Stocks are Undervalued'...

[NewsLetter update from Barron's Online]

Channel Trend
5307 E. Mockingbird Lane, Suite 418
Dallas, Texas 75206
(Tel) (214) 818-0920
(Toll Free) (800) 527-7736
tilton@anet.com
www.channeltrend.com

STOCKS REMAIN UNDERVALUED, and much of this is very likely caused by the inability of profits to recover at a pace that exceeds expectations.

In fact, stocks are likely to remain undervalued, at least to some degree, until earnings growth exceeds expectations and earnings forecasts are raised in response.

My valuation model estimates that the S&P 500 Index is undervalued by 17.8%.

This magnitude of undervaluation is sufficiently great to provide some support for stock prices and to make stocks the preferred asset class for long-term investors looking out three to five years.

-- Jack Tilton
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